According to bloomberg as they compiled a report on the Malawi treasury-Bill boom and the effects of donor with hold of funds proves what Malawian reporters have always known. Lack of responsiveness from government officials to legitimate press inquiries.
Typical of Malawi government officials bloomberg reports questions sent to an e-mail address listed on the Ministry of Finance’s website weren’t replied to, while calls to the ministry’s office weren’t answered as well.
Banda’s spokesman, Steven Nhlane, didn’t respond to questions e-mailed to him as well after he requested them by phone on April 15. The president isn’t involved in graft, Nhlane said Jan. 15 in a mobile-phone text message.
According to bloomberg report there were some positive news like the kwacha gaining 9.6 percent against the dollar this year. It was unchanged at 392.50 by 5:51 p.m. in Lilongwe as of April 16.
The currency is receiving a boost from the Reserve Bank of Malawi’s clearing of pent-up demand for foreign currency and the government’s IMF-led fiscal tightening, according to Yvette Babb, a Johannesburg-based fixed-income analyst at Standard Bank Group Ltd., the continent’s largest lender.
The central bank is “passively intervening to slow down the pace of appreciation by purchasing excess dollars offered by the foreign-exchange market players,” Reserve Bank spokesman Mbane Ngwira said in an e-mail to bloomberg..
Inflation slowed to 24 percent in March from 24.6 percent the previous month, according to the nation’s statistics agency. The central bank estimates that consumer-price increases will average 19.7 percent in 2014 against its target for the year of 15 percent, Ngwira said. The bank kept its key lending rate at 25 percent in February.
what happens after May 20?
Reserve Bank of Malawi would certainly consider loosening monetary policy to achieve lower interest rates once stability and low inflation are recorded says spokesman Mbane Ngwira. Growth will accelerate to 6.5 percent in fiscal 2015 from 6.1 percent this year, supported by improved tobacco production, according to the IMF.
The fallout from the corruption probe will damp investors’ enthusiasm for Malawi, Charles Laurie, head of Africa research at Bath, U.K.-based risk consultancy Maplecroft, said in an e-mailed response to questions on April 14.
“The enormous Cashgate scandal involving some of Joyce Banda’s senior officials tarnishes her reputation and has weakened her chances at the polls,” he said. “The prospect of a closer electoral contest coupled with disruption from the scandal is unsettling.”